In Order for Accounting Information to Be Relevant, It Must

question 173

Multiple Choice

In order for accounting information to be relevant, it must

• A)have very little cost.
• B)help predict future events or confirm prior expectations.
• C)not be reported to the public.
• D)be used by many different firms.

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Definitions:

Costs

The expenses incurred in the process of producing or providing goods and services.

Efficiency Standpoint

A perspective from which actions are evaluated based on their ability to achieve the highest output with the least waste of resources.

Economic Action

Any decision or behavior by individuals or organizations that involves the generation, distribution, and consumption of goods and services.

Costs

The value of resources sacrificed to achieve a particular objective, such as producing goods or services.